Navigation » List of Schools » Glendale Community College » Economics » Econ 102 – Principles of Macroeconomics » Winter 2023 » Week 4 Reading Quiz Chs. 12 and 13
Below are the questions for the exam with the choices of answers:
Question #1
A The government should increase production output through regulating sales of resources and strictly monitor exports and imports.
B The government should implement the COLA to improve the economy
C The government should set up and regulate wages and unions, and set price floors and ceilings for specific fundamental goods.
D The government should keep inflation low and maintain low tax levels over the long run.
Question #2
A supply; long-run
B demand; long-run
C supply; short-run.
D demand; short-run.
Question #3
A The macro equilibrium
B The quantity of output that the economy can produce when it is at less than potential employment of its resources.
C The quantity of output that the economy can produce when it is at full employment of its labor and physical capital.
D The quantity of output that the economy can produce when it is above the natural rate of unemployment.
Question #4
A Vertical
B Upward sloping
C Downward sloping
D Horizontal
Question #5
A Prices
B Quantity of output
C Inflation
D Wages
Question #6
A Short-term fluctuations caused by technological change and labor force growth
B long-run determinants of output and employment
C Intermediate aspects of taxes and spending
D Immediate determinants like changes in hiring and firing
Question #7
A Unemployment will never happen
B Cyclical Unemployment might occur temporarily
C All goods supplied will be demanded at an unchanged price.
Question #8
A Prices would decrease, and the economy would return to its long-term growth trend.
B Wages would increase, and the economy would return to its long-term growth trend.
C Prices would increase, and the economy would return to its long-term growth trend.
D Investment and government demand would increase, and the economy would return to its long-term growth trend
Question #9
A A decline in the level of output
B A rise in the level of output.
C Downward pressure on the price level.
D An increase in the aggregate price level.
Question #10
A it will raise unemployment.
B flexible prices will eventually choke off any increase in aggregate demand.
C it will dis-incentivize production.
D It reduces aggregate output.
Question #11
A decrease in spending by government on health care
B an increase in military spending
C a decrease in military spending
D increase in spending by the government on health care
Question #12
A 42
B 36
C 3.6
D 16.66
Question #13
A is producing at its potential GDP.
B is producing at a point where output is more than potential GDP.
C is producing at its equilibrium point.
D is producing at a point where output is less than potential GDP.
Question #14
A 5.23
B 9.89
C 3.59
D 3.37
Question #15
A a decrease in a major trading partners export prices
B a decrease in interest rates
C a major trading partner’s economic slowdown
D an increase in domestic investment
Question #16
A depression
B excess supply
C natural rate of unemployment
D coordinated wage reductions
Question #17
A labor supply shifts to the left, if wages are flexible.
B labor supply shifts to the right, if wages are flexible.
C labor demand shifts to the left, if wages are flexible.
D labor demand shifts to the right, if wages are flexible.
Question #18
A labor supply shifts to the left, if wages are flexible.
B labor supply shifts to the right, if wages are flexible,
C labor demand shifts to the right, if wages are flexible.
D labor demand shifts to the left, if wages are flexible.
Question #19
A prices and wages are sticky and do not adjust rapidly.
B an increase in government spending will cause the aggregate demand curve to shift to the left.
C an increase in government spending will cause the aggregate demand curve to shift to the left.
D people can afford a high level of government services.